Southend Interactive has broken away from parent company Tactel Holding AB to become an independent studio.
The Swedish developer of Deathrow and ilomilo left the IT consulting group on February 28th.
Southend says the move will allow them to independently invest in their own projects, giving the team greater freedom to "realize their ambition".
"The years with Tactel have been great for Southend and has brought the studio a great deal of technical and market expertise," said CEO Fredrik Brönjemark.
"Yet, now is the right time for Southend to manage its own destiny and to invest in its own products.”
“It's a great opportunity for us to bloom and continue the success we have enjoyed with products such as ilomilo and Deathrow, where we have been the creators of the IP. We are in awe of our fans and hope that this new chapter in Southend history will let us make great new games for them."
The studio's next game, Sacred Citadel, will arrive April 17th on PSN, XBLA and Steam and is being published by Koch Media.